UnitedHealth price target raised to $703 from $697 at Bernstein

Bernstein analyst Lance Wilkes raised the firm’s price target on UnitedHealth (UNH) to $703 from $697 and keeps an Outperform rating on the shares ahead of quarterly results. The firm remains positive on its outlook for MCOs as it sees the names entering a multi-year recovery of margins and valuation. Year-to-date performance is strong, with UnitedHealth up 16%, but Bernstein continues to see valuation upside with EPS growth accelerating 26-28. The firm does not expect EPS and MLR outperformance in Q1 as reserving should be conservative, and expects utilization to be roughly in-line, including a higher flu season. The recovery in Medicaid margins should begin in the second half of the year, and Bernstein expects MA margin improvement in 2026.